Today (June 29) Sungevity made two, concordant major announcements, that it will merge with Easterly Acquisition Corp. and become a publicly traded company. The move will help residential solar company Sungevity raise funds and compete with its publicly traded competitors SolarCity, Sunrun and Vivint Solar.
Under the proposed merger Easterly will change its name to Sungevity Holdings, Inc. (Sungevity Holdings) and will trade on the NASDAQ stock exchange under the ticker symbol SGVT. Under the agreement Sungevity’s current investors will retain roughly 58.8 percent ownership of the combined entity.
Andrew Birch, Sungevity Founder will lead the new entity and Sungevity’s management team will remain with Sungevity Holdings. The board of will be comprised of members from Easterly and Sungevity. Already the boards of both companies have approved the merger and it is slated for completion as soon as the third quarter of 2016.
“We have always considered ourselves to be the ‘disruptor’ within a disruptive industry,” Birch said. “Easterly’s management has a track record of bringing innovative, growing companies to public shareholders and we expect that our merger will enhance our ability to innovate and grow as we strive to provide the highest customer experience to our expanding customer base.”
Currently Easterly’s trust account is estimated to have $200 million, which will be used following the closing by Sungevity for its business operations and will remain on its balance sheet. Following the merger the anticipated initial market capitalization, including fees and expenses, is estimated to be approximately $607 million, according to Sungevity.
Investor’s Business Daily said that the market cap would put it ahead of “residential installers Sunrun and Vivint Solar ($575.6 million and $324 million, respectively).” It added that SolarCity and SunPower, however, each have market caps above $2 billion.
“We believe the partnership between Sungevity and Easterly will further establish Sungevity as a well-capitalized innovator in its accelerating market,” said Darrell Crate, Easterly chairman. “We will provide leverage to the strong management team in building channel partnerships to drive value to the approximately 88,000,000 households that are forecast to save on monthly bills through going solar by 2020.”Tweet